In a recent op-ed piece published in Nigeria’s online Daily Trust, Ms Ijeoma Kalu urges the Central Bank of Nigeria (CBN) to tighten regulation of the microfinance industry and ensure “that only professionals are permitted to practice.”
“Ignoring to regulate the activities of these informal sources,” Ms Kalu argues, “does not create a vibrant financial system that promotes micro, small and medium enterprises’ growth and development. This is because their activities are not monitored by official regulatory organs, such as the Central Bank of Nigeria (CBN), to enhance stability and promote a sound financial system.”
By Stefanie Rubin, Research Associate
About the Central Bank of Nigeria (CBN):
The Central Bank of Nigeria (CBN) is Nigeria’s central banking authority, established in 1958. Some of the regulatory objectives of CBN as follows: to issue legal tender, to maintain the external reserves of the country, to promote monetary stability and a sound financial environment, and to act as a banker of last resort and financial adviser to the federal government.
About the Nigerian Deposit Insurance Corporation (NDIC):
The Nigeria Deposit Insurance Corporation (NDIC) was created in 1983 by the Board of the Central Bank of Nigeria in order to help regulate and supervise the country’s financial institutions.
Additional Resources:
Source Article: Daily Trust: “The Hidden Merits of Microfinance,” http://www.news.dailytrust.com/index.php?option=com_content&view=article&id=16727:the-hidden-merits-of-microfinance&catid=49:opinion&Itemid=200
MicroCapital Universe: Central Bank of Nigeria (CBN): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
MicroCapital Universe: Nigerian Deposit Insurance Corporation (NDIC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nigeria+Deposit+Insurance+Corporation+%28NDIC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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